Rupee touched a fresh record low of ₹92.18 against the US dollar on Wednesday, slipping 69 paise in early trade. The fall marks a significant breach of the ₹92 level, reflecting heightened pressure on the domestic currency.
The decline was largely driven by a surge in global crude oil prices following escalating tensions in the Middle East. Brent crude moved above $82 per barrel, increasing concerns about India’s trade deficit and inflation outlook. Higher oil prices raise import costs, which in turn weaken the rupee.
At the same time, global investors shifted toward the US dollar as a safe-haven asset, strengthening the greenback. Foreign institutional investors also reduced exposure to Indian equities, leading to capital outflows and additional pressure on the currency.
A weaker rupee could make imports costlier and add to inflationary risks, especially in fuel and related sectors. Economists say the currency’s movement will depend on crude oil trends, global market sentiment, and possible intervention by the Reserve Bank of India.
If geopolitical tensions persist and oil prices remain high, the rupee may continue to face volatility in the coming sessions.
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